Correlation Between Pembina Pipeline and ASTRA INTERNATIONAL

Can any of the company-specific risk be diversified away by investing in both Pembina Pipeline and ASTRA INTERNATIONAL at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Pembina Pipeline and ASTRA INTERNATIONAL into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Pembina Pipeline Corp and ASTRA INTERNATIONAL, you can compare the effects of market volatilities on Pembina Pipeline and ASTRA INTERNATIONAL and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Pembina Pipeline with a short position of ASTRA INTERNATIONAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pembina Pipeline and ASTRA INTERNATIONAL.

Diversification Opportunities for Pembina Pipeline and ASTRA INTERNATIONAL

-0.25

Correlation Coefficient

Pembina Pipeline  ASTRA INTERNATIONAL

Very good diversification

The 3 months correlation between Pembina and ASTRA is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Pembina Pipeline Corp and ASTRA INTERNATIONAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASTRA INTERNATIONAL and Pembina Pipeline is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Pembina Pipeline Corp are associated (or correlated) with ASTRA INTERNATIONAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASTRA INTERNATIONAL has no effect on the direction of Pembina Pipeline i.e., Pembina Pipeline and ASTRA INTERNATIONAL go up and down completely randomly.

Pair Corralation between Pembina Pipeline and ASTRA INTERNATIONAL

Assuming the 90 days horizon Pembina Pipeline Corp is expected to generate 0.4 times more return on investment than ASTRA INTERNATIONAL. However, Pembina Pipeline Corp is 2.51 times less risky than ASTRA INTERNATIONAL. It trades about 0.08 of its potential returns per unit of risk. ASTRA INTERNATIONAL is currently generating about 0.02 per unit of risk. If you would invest  3,453  in Pembina Pipeline Corp on December 30, 2024 and sell it today you would earn a total of  230.00  from holding Pembina Pipeline Corp or generate 6.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Pembina Pipeline Corp  vs.  ASTRA INTERNATIONAL

Pembina Pipeline Corp

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Pembina Pipeline Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Pembina Pipeline may actually be approaching a critical reversion point that can send shares even higher in April 2025.

ASTRA INTERNATIONAL

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ASTRA INTERNATIONAL are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, ASTRA INTERNATIONAL is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Pembina Pipeline and ASTRA INTERNATIONAL

The main advantage of trading using opposite Pembina Pipeline and ASTRA INTERNATIONAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pembina Pipeline position performs unexpectedly, ASTRA INTERNATIONAL can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ASTRA INTERNATIONAL will offset losses from the drop in ASTRA INTERNATIONAL's long position.

The idea behind Pembina Pipeline Corp and ASTRA INTERNATIONAL pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Check out your portfolio center.

Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.